The affirmation reflects the company's strong capitalization and strong liquidity as measured by our model. These strengths are offset somewhat by its weakened operating performance in 2011, as well as the company's product-line concentration in the accident and health business.

American Republic Insurance, which is based in Des Moines, Iowa, is a life and health insurance company that holds licenses to do business in 49 states and the District of Columbia. American Republic Insurance is ultimately controlled by American Republic Mutual Holding Co. through an intermediate holding company, American Enterprise Group Inc.